African Gold Group Inc (CVE:AGG) (OTCMKTS:AGGFF) (FRA:3A61) plans to raise C$4 million gross from a private placing to advance infill and exploration drilling at its flagship Kobada project in southern Mali.
The non-brokered financing is for up to over 26.7 million units at C$0.15 each.
READ: African Gold Group says latest drilling at flagship Kobada gold project augurs well for expanding resources
Each unit comprises one company share and one half of a share purchase warrant, with each whole warrant entitling the bearer to acquire one additional company share at an exercise price of C$0.25 for two years from issue.
Closing of this offering is expected to occur on or around February 19 this year.
African Gold Group is on track to become Africa’s next mid-tier gold producer, with the company targeting production of 100,000 gold ounces per year from Kobada by the second quarter of 2022.
Other exploration locations have also been identified on the Kobada, Farada and Kobada Est concessions, offering potential for an increase in resource.
Last week, the company said it had now completed two drill phases - 3A and 4A - at the site, which was aimed at upgrading the oxide resources to the higher confidence indicated and measured category and to initially prove the presence of mineralisation at the neighbouring Gosso shear zone.
The West Africa-focused mining group told investors it aims to include these drill results into the updated resource estimate for Kobada, which is on track for early this year.
Contact the author at giles@proactiveinvestors.com